Post acquisition user migration

Question

We acquired another company about a year ago and setup B2B external guests (converted to member type) as a stop gap during the transition and now the users have fully provisioned accounts on the target tenant. Below is a high level overview of the steps we performed.

Acme corp acquired Contoso corp and users of Contoso were invited to be external users in Acme.

Contoso users in the Acme tenant had their UPNs updated and licenses assigned. Mail and SharePoint data was migrated using external 3rd party tools.

Contoso domain was removed as an authorized domain under contoso.onmicrosoft.com and moved to acme.onmicrosoft.com. Aliases were assigned.

The former company owner maintained control of the original tenant for legal reasons and all users have been using their new logins with Acme without incident.

When attempting to reset passwords from Entra, former Contoso users get an error of "not the users home directory" but we are able to reset password though the admin.microsoft.com portal. How can we formally transition these users to Acme so that we can decommission the existing tenant.

Answer 1

Hello @Josh Keenan , in order to migrate users from tenant to other you will need to re-create them in the target tenant. Updating their user type to member is meant to provide them with more rights but won't change their home tenant.

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